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Peninsula Candy Company makes three types of candy bars: Chewy, Chunky, and Choco-Lite (Lite), Sales volume for the annual budget is determined by estimating the
Peninsula Candy Company makes three types of candy bars: Chewy, Chunky, and Choco-Lite (Lite), Sales volume for the annual budget is determined by estimating the total market volume for candy bars and then applying the company's prior year market share, adjusted for planned changes due to company programs for the coming year, Volume is apportioned among the three bars based on the prior year's product mix, again adjusted for planned changes for the coming year. The following are the company budget and the results of operations for July. Chewy 2,000 bars2 $200 Chunky ,000 bars S350 Choro Lite 4.000 bars $640 480 $160 Tatal 8,000 bars $1.200 920 $ 280 142 300 $ 60 S60 $ 18 S 30 $100 3146 $ 93 Budget Sales-units in thousands) Sales-dollar in thousands) Variable costs Contribution margin Manufacturing fixed cost Product margin Marketing and administrative costs (all fixed) Operating profit Actual Sales-units in thousands) Sales-dollars (in thousands Variable costs Contribuban margin Manufacturing fixed cost Product margin Marketing and administrative coste (all fixed) Operating profit 1.500 bars $105 4.100 bere S640 2.000 bars S380 300 S 80 7.600 bars 31,105 484 $ 221 $ 39 $123 129 S 24 $ 85 $ 92 41 $ 51 Industry volume was estimated at 83.5 million bars for budgeting purposes. Actual industry volume for July was 79.5 million bars. Required: Break down the total activity variance into sales mix and quantity parts. (Do not round intermediate calculations. Indicate the effect of each variance by selecting "F" for favorable, or "U" for unfavorable. If there is no effect, do not select either option.) Sales mix variance Quantity variance
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